Policy Rates Unchanged : RBI
The Reserve Bank of India’s Monetary Policy Committee (MPC) has decided to keep the policy rates unchanged, taking into account the evolving macroeconomic situation.
- This is the second consecutive pause after a previous conservative rate hike of 250 basis points aimed at curbing inflation.
- The decision reflects a cautious approach to balance inflation management and support economic growth.
- Policy Rates Unchanged:
- The policy repo rate under the liquidity adjustment facility (LAF) remains unchanged at 6.50%.
- The standing deposit facility (SDF) rate remains unchanged at 6.25%.
- The marginal standing facility (MSF) rate and Bank Rate are maintained at 6.75%.
- Assuming a normal monsoon, CPI inflation is projected at 5.1% for 2023-24
- The MPC aims to withdraw accommodation gradually to align inflation with the target while supporting growth.
- The objective is to achieve the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%.
